God Bless INDIA...

I remember someone saying, “A leader is the one who emerges out of the crowd and achieves set objectives”. There are hundreds of theories available about leadership traits, but the one which has strike my mind is the above line.

I feel we don’t need reservation to find leader amongst us. As the word says reservation means book something for future use, may be a service or a space, but not a leader. I do understand we are in a democratic country where we have a right to choose our leader but the idea of reserving a leader can not be digested.

Reservations are the means to provide benefits to the certain segment of society, which is economically backward. And the same can not be used to empower the backward class. You really have a concern about women or any backward class; provide them better education, better facilities and spread the awareness about human rights(if you think the crimes against women are a concern). Address the real problem at the base level, rather than a short cut solution to the problem.

We have seen the problem with reservation in local panchayat bodies, and the same thing will replicate in the parliament level. As the womens quota bill is a sensitive issue, no one dares to oppose it publicly. Let’s not be so cynical about vote bank politics, express it publicly.

I am not against women or any back ward class, i m just against the concept of reservation of a leader.

Let’s unite, raise voice...

Rice Supply Situation

Rice is a staple food of half of the world’s population. As we produce close to 163 mt(Million Tonnes) of rice per year, we play a vital role in the international rice market . Hence any happenings in the Indian agricultural sector will have an impact on the global market.

On the backdrop of poor monsoon across india and the recent flood in the southern india will surely have a cut on the khariff production figures. After a record of 99mt output in last years khariff, we are now estimating to produce 81mt this year. At the moment shortfall of substantial 18mt is a cause of concern. We might face a worst rice supply situation in the days to come

What government will do:

• Regulate the rice market: Controlling inventory build up under ESMA will ease out supply for some time, but it is going to kill traders & millers in the market.
• Import of rice: As of now India has not participated actively in international market to procure rice. A sudden move by FCI will shore up rice prices globally as the volumes will increase rapidly.

What government should do:

• Rice @ Rs.2/kg: Rice sold at a substantial subsidised price will have lesser utility and the wastage is more. Centre should request state government to abolish such schemes for the time being.
• Substitute food: Think over promoting substitute food products like wheat, maize or other pulses.
• Increase domestic supply: improve the water availability conditions on ground to cultivate rice so that Rabi will have higher output units.
• Crop Insurance: Promote farmers to cultivate for Rabi season by assuring them with crop insurance. As most of them feel that, there will be scarcity of water in the summer season. Hence most of them have not even started seedling plots for nursery.

Every time a crisis occurs, we can not always look back to our age old strategy of regulating the traders & millers inventory in the market. We have to shift to a level, where we can address the base of the problem.

Rabi season is nearing, but water availability during this term is difficult to predict as the season gets over in summer. Hence government should design a strategy which will improve transplantion of paddy.

SAY NO TO SUBSIDY

I think word “subsidy” is always associated with problems rather than solutions. Intent of the government to relieve common man is misused in many ways. Centre spends enormous amount of resources and energy in controlling misuse, but the question is whether govt is successful enough in regularising its policies???

Export of Pottash

International market price of potash is nearly $640 per tonne (nearly Rs.31000) and the subsidised potash sold at Rs.4455 per tonne in Indian market. The differential between these two prices will invite smugglers to exploit the margin of profit.

These days,I had been meeting many guys, who would want to purchase potash upto Rs.9000- 10000 per tonne when the MRP is fixed at Rs.4455 per tonne. And retailers in smaller places will not think for a single minute before selling their goods, they say, by selling it to farmers I hardly get Rs.300 per tonne if some one wants to give me extra 4000- 5000 bucks why not sell it to him?

Initially I did not have an idea, what they would be doing with such an expensive purchase of fertiliser. After a small effort i came to know that, these middlemen sell this fertilizer to smugglers and the same will be exported to nearby countries such as Malaysia and Vietnam. In the later stage same exported fertiliser will be imported back to india at the prevailing international market prices.

The whole consignment will be shipped out by declaring falsely the goods as industrial salt. In a later stage same material will be imported back as Muriate Of Potash popularly known as MOP.

We have many rules & regulations, but none of the rules help us in protecting tax payer’s money. In this globalised world market should rule the market and not the government.

SAY NO TO SUBSIDY...

Sugar Cane: Short Term is OK But What About Long term?

As the sugar production dropped from 250 MT to 150 MT, we are able to witness a sharp rise in the sugar price. Data says at present we are not running out sugar inventory, but there will be a case where demand surpasses supply in the months to come. Due to heavy storing and speculation, price of sugar is sky rocketing.

To control the price, centre has come up with a stock limitation notification. According to this notification any individual or company using sugar as a raw material more than 10 quintals or 1000 kg has to provide CA certificate for their usage pattern. This notification will cover small entities like mithai shops, bakeries and restaurants along with companies like Britannia industries, Parle and Haldiram’s.

This eventually leads large industry to shell out their extra inventory to the open market and there by have a control on the rising price of sugar.

We are happy that centre has come up with a quick remedy to the rising problem of sugar. But, policy maker should realise stock limitation notification is a solution to the current short term problem and still the long term problem of sugar is not yet resolved.

As we all are aware that sugar cane is not just a raw material to produce sugar but also to produce ethanol, bio fuel and thermal power. Molasses contributes major revenue for the state’s excise exchequer and also used in blending petrol to make it greener so that it emits less green house gas. At present we are using 5% ethanol blended petrol across the country and the target is to increase the blend to 10 percent.

Keeping all these points we can not directly look out for a window to import sugar. We have to improve our production figures at ground level. Govt should adopt a policy where they can encourage farmers to grow more sugar cane.

Nutrient Based Fertiliser subsidy Scheme: How efficient it would be?

One of the important features of the Budget presented by Mr.Pranab Mukherjee is to move towards a nutrient based fertiliser subsidy regime. In regard to this scheme, govt has approached leading bankers to extend their support to efficiently delivering subsidy amount to the end farmer. As such working out an efficient & transparent system is not a simple task.

Idea of delivering subsidy directly to the farmer is good. But, will this reduce the subsidy burden on the central government?

Let me try to analyse the situation when the scheme is in force;

• Norms would be designed in such a way that there will be an upper cap to use fertiliser. For eg, 3 Quintal of Urea/acre for Paddy in an irrigated area.
• In reality farmers use it more than what is recommended which is a routine now and changing the consumption habits will hamper the yield.
• If the yields are low, farmers will be in trouble and the net share to the GDP will come down drastically.
• To handle this problem, farmer will start declaring higher amount of land in cultivation so that he gets a better quantity of fertiliser.
• Corruption will increase in the system to get a better allocation share; there is a chance of grey market.

I don’t see a small benefit out of this scheme. Government should reconsider the plan.

Base of the problem: In the last financial year, to woo the farmers, govt has reduced the MRP of all complex fertilisers by almost Rs60/- to Rs110/- to different categories of complex fertiliser. A significant reduction in the MRP has started affecting planned budget allocation for fertiliser subsidy. Central govt did not have funds to pay the subsidy bill raised by manufacturers of fertiliser, so they started issuing bonds to fertiliser manufacturers ( Duringthe last year monsoon all commodity prices reached the sky), leaving fertiliser manufacturers with no working capital to continue their operations. Finally, a shortage for fertiliser in the market.

My advice to the government;

• Stop wasting time on designing a system for nutrient based fertiliser subsidy scheme.
• Increase the MRP of all fertiliser, there by reduce the subsidy burden on central govt. (Reduction in the MRP has not reached end user, in fact it has created a black market. Because there was an acute shortage for fertiliser after the reduction in the MRP. Today fertiliser is sold above the last years price)
• Since a decade there is no revival of fertiliser prices, there needs to be regular changes in the MRP to acclimatise the respective situation in the market.
• Liberalise fertilise manufacturing policy.
• Invite private investments in this segment in an aggressive way.
• Devise a scheme where you can reduce the manufacturing prices.
• Do not alter the existing system of delivering subsidy.

There is a need for nation wide discussion on the new subsidy scheme. The way we fought for the gay marriage rights, we should also fight for the upliftment of the agri sector.

Caste, Religion & Dynasty

Elections are over and UPA has got public mandate to form the government. Most of the candidates who has won this election is because of caste, religion or the family name. Ours is a polity dominated by top down hierarchy and there is no value for a person who believes in the concepts of governance & accountability.

The recent fight between Congress -DMK on the issue of allocation of ministerial berths to the family members of the Karunanidhi is a best lesson for all of us. 

It was a common feel among observers in Delhi on the past performance of TR Balu & A Raja was a completely negative. Balu has misutilised his powers to help his son in the business and he failed totally in governance & accountability. It was a sensible decision by Mr.Singh to keep them out of the new government and also, he never wanted Azhagiri to take up any position in the new govt as he has won the MP seat for the first time and he is less experienced. At the end, Karunanidhi emerged as a winner by getting executive positions for his family members and two of his top acolytes.

Such political drama has become normal in politics, it is you and me to think and do something about it, otherwise the creator has to take new avatar to set it off.

Be Careful !!!

Friends... Time to be catious & careful, during the IPL 2 season. As their might be a problem with security in those 14 locations where IPL matches are clashing with general election schedule. It is better for us to be cautious and take care of our own security rather than depending on some one else to do the job. And don't beleive completely in the words of Home Minister, as he is habituted in giving overconfident statements like, "cricket in india is always safe and there needs to be some adjustment in the schedule of the game".

In the past, we have seen him giving such overconfident statements on indian economy. But, in reality he did nothing. He is the main reason for huge fiscal deficit, jobloss, low demand and poor indian economy.

So, don't go with his word and take care of your own security.